What is “No fault” Insurance?
It’s a type of insurance by which the victims of an auto accident are compensated by their own insurance company, no matter who caused the accident. This outcome is different from what occurs under the traditional tort system of compensating victims of an accident. In the tort system, the party who is at fault is required to compensate the victims of the accident. The idea behind no-fault insurance is to keep small claims from being settled in our expensive legal system. To accomplish its purpose, no-fault insurance restricts the injured person’s right to sue the negligent driver in those instances where the loss falls below a certain threshold. Two types of thresholds are typically used: verbal thresholds and dollar thresholds. A dollar threshold proscribes a dollar limit that a claim must reach before the injured person regains his or her tort rights (the ability to sue). A verbal threshold uses a written description to determine when the injured person regains his or her right to su
It’s a type of insurance by which the victims of an auto accident are compensated by their own insurance company, no matter who caused the accident. This outcome is different from what occurs under the traditional tort system of compensating victims of an accident. In the tort system, the party who is at fault is required to compensate the victims of the accident. The idea behind no-fault insurance is to keep small claims from being settled in our expensive legal system. To accomplish its purpose, no-fault insurance restricts the injured person’s right to sue the negligent driver in those instances where the loss falls below a certain threshold. Two types of thresholds are typically used: verbal thresholds and dollar thresholds. A dollar threshold proscribes a dollar limit that a claim must reach before the injured person regains his or her tort rights (the ability to sue). A verbal threshold uses a written description to determine when the injured person regains his or her right to su
Related Questions
- I currently have a job and insurance for myself and my son, but after 3 months of my maternity leave if I decide to resign my job, will I be able to get FAMIS for myself and my two sons including my husband who has Obama care?
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